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Talks resume between Loblaw, unions

Talks between Loblaw and its unions resumed Thursday after workers at nine stores go on strike. Zehrs Great Foods and Real Canadian superstore groceries in southwestern Ontario affected. Strike could spread on Sunday.

Talks between Loblaw Cos. Ltd. and its unionized workers resumed Thursday, a day after workers at 9 stores in southern Ontario went on strike and more were threatening similar action at stores in the Greater Toronto Area.

The United Food and Commercial Workers union said they went back to the bargaining table at the behest of the provincial labour ministry.

“Ontario Ministry of Labour Mediator Specialist John Miller, who has been assisting the parties throughout negotiations, has requested that your union negotiating committee and the company return to the bargaining table on Thursday, July 2, 2015,” Local 1000a said on a website message.

A media blackout was imposed during the discussions, the union said.

The move comes just three days ahead of a July 5 strike deadline that could see 12,000 workers walk off the job at 61 stores in the Greater Toronto Area, Peterborough, Kingston, Ottawa and London.

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They would join 1,600 workers who are already on the picket line at Loblaw-owned stores in Windsor and surrounding area.

“Extensive strike preparations continue across the province. Once again, we ask all of our members to plan to picket next week based on their schedule this week,” the union said.

The strike would be the first at Loblaw-owned stores in the GTA. It would also come just ahead of the 2015 Toronto Pan Am Games, which Loblaw’s private label brand, President’s Choice, is a major sponsor.

Most of the stores in the GTA and beyond operate under the names Loblaw Great Food and Loblaw Superstores. Loblaw Great Food stores offer mainly food and some Joe Fresh clothing, while Superstores also carry a wide assortment of general household merchandise.

The stores already on strike include three Loblaw-owned Zehrs Great Foods outlets in Windsor and another in nearby Kingsville, two Real Canadian Superstore outlets in Windsor and stores in Chatham, Leamington and Sarnia.

Those workers, represented by Local 175 & 633 of the same union, walked off the job just after midnight on Wednesday.

Loblaw says all nine stores remain open, but with modified store hours (10 a.m. to 8 p.m.) and a reduction of some in-store services.

The company says another 60 stores represented by UFCW Local 1000A are scheduled to go on strike on Sunday in markets from London, Ont., to Ottawa.

Another 14,000 Loblaw workers also represented by UFCW Local 175 and 633 voted to accept the company’s offer last week and have remained on the job.

That includes workers at 50 Loblaw-owned stores in the Ottawa area as well as central and north central Ontario, the union said.

Members of Fortinos’ Sausage Warehouse, 22 Fortinos stores, and 3 Real Canadian Superstores (RCSS) also ratified the deal in separate votes held Sunday and Monday.

The union has said the key issues in the dispute are wages, work schedules, benefits and limits on third party providers.

Some union members have pointed out that Loblaw workers with the fewest hours will be at minimum wage for the duration of the six years.

Loblaw Cos. Ltd. reported a big jump in profit in its latest quarter as it benefited from major strategic moves, including the purchase of Shoppers Drug Mart, the country’s largest drugstore chain.

Canada’s largest grocery company said its net income was up 21.7 per cent from the same time last year, rising to $146 million and its adjusted net income was up 96.7 per cent to $301 million.

Revenue for the quarter ending March 22 was $10.05 billion, up $2.76 billion or 37.8 per cent from the same time last year.

Most of the increase came from Shoppers Drug Mart.

Loblaw also raised its quarterly dividend by 2 per cent to 25 cents per common share, starting in July.

Like other supermarket chains, Loblaw is in fierce competition with non-union rival Wal-Mart, which has been adding more food to its general merchandise stores.

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